Head-To-Head Survey: Kite Realty Group Trust (NYSE:KRG) versus RioCan Real Estate Investment Trust (OTCMKTS:RIOCF)

RioCan Real Estate Investment Trust (OTCMKTS:RIOCF) and Kite Realty Group Trust (NYSE:KRG) are both real estate companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, profitability, earnings, dividends, valuation, risk and analyst recommendations.

Profitability

This table compares RioCan Real Estate Investment Trust and Kite Realty Group Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RioCan Real Estate Investment Trust	N/A	N/A	N/A
Kite Realty Group Trust	41.80%	11.26%	5.20%

Earnings and Valuation

This table compares RioCan Real Estate Investment Trust and Kite Realty Group Trust”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RioCan Real Estate Investment Trust	N/A	N/A	N/A	$2.46	6.23
Kite Realty Group Trust	$844.36 million	6.21	$298.66 million	$1.62	16.15

Kite Realty Group Trust has higher revenue and earnings than RioCan Real Estate Investment Trust. RioCan Real Estate Investment Trust is trading at a lower price-to-earnings ratio than Kite Realty Group Trust, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

33.6% of RioCan Real Estate Investment Trust shares are held by institutional investors. Comparatively, 90.8% of Kite Realty Group Trust shares are held by institutional investors. 2.7% of Kite Realty Group Trust shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

RioCan Real Estate Investment Trust pays an annual dividend of $1.41 per share and has a dividend yield of 9.2%. Kite Realty Group Trust pays an annual dividend of $1.16 per share and has a dividend yield of 4.4%. RioCan Real Estate Investment Trust pays out 57.3% of its earnings in the form of a dividend. Kite Realty Group Trust pays out 71.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Kite Realty Group Trust has raised its dividend for 4 consecutive years. RioCan Real Estate Investment Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent ratings and price targets for RioCan Real Estate Investment Trust and Kite Realty Group Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RioCan Real Estate Investment Trust	0	0	0	0	0.00
Kite Realty Group Trust	0	7	2	1	2.40

Kite Realty Group Trust has a consensus target price of $30.14, suggesting a potential upside of 15.22%. Given Kite Realty Group Trust’s stronger consensus rating and higher possible upside, analysts clearly believe Kite Realty Group Trust is more favorable than RioCan Real Estate Investment Trust.

Summary

Kite Realty Group Trust beats RioCan Real Estate Investment Trust on 12 of the 15 factors compared between the two stocks.

About RioCan Real Estate Investment Trust

RioCan is one of Canada's largest real estate investment trusts. RioCan owns, manages and develops retail-focused, increasingly mixed-use properties located in prime, high-density transit-oriented areas where Canadians want to shop, live and work. As at December 31, 2023, our portfolio is comprised of 188 properties with an aggregate net leasable area of approximately 32.6 million square feet (at RioCan's interest) including office, residential rental and 9 development properties.

About Kite Realty Group Trust

Kite Realty Group Trust (NYSE: KRG) is a real estate investment trust (REIT) headquartered in Indianapolis, IN that is one of the largest publicly traded owners and operators of open-air shopping centers and mixed-use assets. The Company’s primarily grocery-anchored portfolio is located in high-growth Sun Belt and select strategic gateway markets. The combination of necessity-based grocery-anchored neighborhood and community centers, along with vibrant mixed-use assets makes the KRG portfolio an ideal mix for both retailers and consumers. Publicly listed since 2004, KRG has nearly 60 years of experience in developing, constructing and operating real estate. Using operational, investment, development, and redevelopment expertise, KRG continuously optimizes its portfolio to maximize value and return to shareholders. As of December 31, 2023, the Company owned interests in 180 U.S. open-air shopping centers and mixed-use assets, comprising approximately 28.1 million square feet of gross leasable space.